Retirement income from property?

silvercar

DD, you moved from someone keen to repay the mortgage in 3 years to someone thinking of investing in potentially risky ventures.

My advice is to check the Dithering Mum has the same viewpoint as yourself.

geoffky

DD wait for three or four years
.we will have a much clearer picture of where we are at and where we are going...Too much risk around at the moment for making decisions that could wipe you out. good luck

Generali

If you're going to borrow to invest then ultimately it has be about cashflow in the end - does your proposed investment stack up in those terms?

Also, it's good to stress test the investment. What happens if you don't get a tenant for a year or the property value halves? Work out a few worst case scenarios and see what they would do to your finances.

Finally, is it possible to ring-fence the risk in some way to reduce the possible impact of any downside on your personal finances. For example, it the propeerty could be owned by a Limited Company?

Ultimately it comes down to your attitude to risk.

fc123

dopester wrote: »

This thread: Retirement income from property?

You might as well say you are looking for a home with capital when the world has changed drastically.

How can I squeeze the value-producing part of society and business, to use my capital and have them pay from their profits and income to support my own lifestyle?

The world has changed. IMO you'd be best of searching-out a number of companies who have business plans and new ideas for successful trade, and seed-invest in them. Instead of trying to join those landlords who are dying now the consumer boom is over, incomes are falling, credit is tighter, and business premises and shops that once were profitable have bleaker futures.

That isn't to knock you DD. I just want the best for you, honest.

Hi DS..this post is the sort that has been missing from this board for a while. Love it.;)

fc123

Dithering_Dad wrote: »

What additional things do you have to pay with a commercial property than with a residential one. I'm assuming that if I have 2 self-contained flats then I'd have to pay 2xcouncil tax and 2xwater rates if they're empty. What do you have to pay on the shop if it's empty (or indeed occupied)?

You are liable for full business rates after 3 months vacant relief.
If rent is under (I think, may have changed recently?) £15k pa and independent business, the occupier pays only 50% but not the owner.

I am not going to go on about the changes in retail that are affecting commercial property values, albeit very slowly, but would recommend The Long Tail by Chris Anderson to anyone thinking of 'investing' in commercial property.

TBH I am with Dopestar...the future is the not obvious and some things that will rock are not gleaned from past business/investment models but from new, innovative ways of doing things.

That is where the biggest gains will come from for some.

fc123

Generali wrote: »

If you're going to borrow to invest then ultimately it has be about cashflow in the end - does your proposed investment stack up in those terms?

Also, it's good to stress test the investment. What happens if you don't get a tenant for a year or the property value halves? Work out a few worst case scenarios and see what they would do to your finances.

Finally, is it possible to ring-fence the risk in some way to reduce the possible impact of any downside on your personal finances. For example, it the propeerty could be owned by a Limited Company?

Ultimately it comes down to your attitude to risk.

I saw your sig Gen..just going off topic...hope it's going well.
What do you say when a client askes if he/she should by now though?

brit1234

The sensible option is to pay off the mortgage as fast as possible while rates are low. It is the best and most efficient investment for your future by a mile.

Generali

fc123 wrote: »

I saw your sig Gen..just going off topic...hope it's going well.
What do you say when a client askes if he/she should by now though?

It is going well thanks. I've got 2 weeks training before I start to see clients and I've just completed week one. It also looks like I've got an interview to be a bank manager.

It's a good question. I guess I use the same points as I use on here - short-mid term you have to be looking for the property to be cashflow positive after all costs and a risk premium. Long term you should expect a great inflation hedge and you may get a little more on top of that. If you invest on that basis then you're always likely to come out ahead, regardless of short term movements in house prices.

I think BTL is a better proposition in Aus (or Sydney at least) than in the UK due to different tax treatments and also what appears to be a genuine shortage of rental accomodation - tenants I know are also complaining about a lack of supply.

fc123

Generali wrote: »

It is going well thanks. I've got 2 weeks training before I start to see clients and I've just completed week one. It also looks like I've got an interview to be a bank manager.

It's a good question. I guess I use the same points as I use on here - short-mid term you have to be looking for the property to be cashflow positive after all costs and a risk premium. Long term you should expect a great inflation hedge and you may get a little more on top of that. If you invest on that basis then you're always likely to come out ahead, regardless of short term movements in house prices.

I think BTL is a better proposition in Aus (or Sydney at least) than in the UK due to different tax treatments and also what appears to be a genuine shortage of rental accomodation - tenants I know are also complaining about a lack of supply.

You are going to be good at this...judging from the above.
I was thinking it could go a bit;

''I would like a morgtage...''
You think 'Kerching' but then they say
''Oh, but what to do you think of house prices now, general economic climate bla de bla? Should I wait for a while?''

Does the 'Kerching' thought then get buried?
From the above post, I figure you will give great balanced advice enabling you to keep being you plus bring in enough kerching for the family.;)

fc123

Wow, bank manager..can't wait to hear what that will be like if you get the job. Have we ever had a real bank manager post on this board before?